Solana whale moves $25M of USDC debt from Solend to Mango Markets
The Solana (SOL) whale that was subjected to the potential takeover by a current Solend governance vote has gotten in contact with the lending protocol and moved $25 million value of USD Coin (USDC) debt to Mango Markets.
In a tweet, Solend shared that the whale has acted on the staff’s suggestion to maneuver its place throughout varied lending protocols. The act reduces the utilization of USDC inside Solend, permitting its customers to withdraw their belongings as soon as extra.
USDC utilization has dropped from 100% to 98% that means customers can withdraw once more pic.twitter.com/RRCkIbHv51
— Solend (we’re hiring!) (@solendprotocol) June 21, 2022
Whereas the transfer looks like a band-aid answer to a much bigger liquidation drawback, the Solend staff highlighted that they’re working with the whale and the Mango staff to create a extra long-term answer to the underlying drawback.
Other than this, the lending protocol has additionally passed one other governance vote that may considerably decrease the account borrow restrict that is at the moment at $120 million to $50 million. Debt above the brand new restrict set can be topic to liquidation it doesn’t matter what its collateral worth is.
The protocol has additionally lowered the quantity that may be liquidated inside one transaction by decreasing its most liquidation shut issue to 1%. It additionally lowered the liquidation penalty for Solana from 5% to 2%. Each reductions are short-term and should change as soon as the whale scenario has been handled.
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On Sunday, the Solend lending platform obtained criticisms for its SLND1 governance vote that goals to take over the whale’s pockets to mitigate dangers. The vote closed with a 97% approval ranking. Nonetheless, it obtained many criticisms because the transfer goes towards the rules of decentralization.
Due to the detrimental suggestions brought on by the preliminary transfer, the lending platform determined to carry a second governance vote to invalidate SLND1. The second proposal was authorised, gathering 1,480,264 votes in favor of disregarding the pockets takeover plan.
